15 November 2001 Edition
Drug deal struck at WTO
Trade negotiators at world trade talks in Doha reached broad agreement on Tuesday on a deal to ensure that developing countries have access to medicines.
Every two years, the World Trade Organisation (WTO) holds a high-level ministerial meeting. From 9 to 13 November, world trade ministers gathered in Qatar, on the Persian Gulf for the first WTO meeting since the events of Seattle, when anti-globalisation protesters (comprising environmentalists, trade unionists and many others) made their voices heard.
WTO rules promote private ownership of plants' genetic material, including food crops on which millions depend, and medicines. Early this year, drug companies took legal action against the Government of South Africa and Brazil, saying their efforts to produce cheap medicines for people with HIV/AIDS were against WTO rules. These cases were dropped under pressure from the public in many countries - rich and poor.
Ministers in Doha approved a text relating to the WTO's intellectual property rights accord, known as TRIPS, stating that TRIPS "can and should be interpreted and implemented in a manner supportive of WTO members' rights to protect public health and in particular to ensure access to medicines for all".
Senior US trade officials said that "great progress" had been made on the health issue, and the success demonstrated to developing countries that the WTO was "part of the solution, not part of the problem". But they also argued the text was a political statement that did not have legal force.
Oxfam's Ian Bray told the BBC that the Doha deal was better than anyone could have hoped for a year ago.
However, Oxfam expressed disappointment no agreement has been reached on the issue of compulsory licensing in third countries. This allows countries with no drugs industry to arrange cheap production abroad.
But the pharmaceutical industry expressed concern that the "ambiguity" of the deal could make companies reluctant to engage in Aids research.
Loaded Against the Poor
Just before the meeting, the Trade Matters group, formed by six Irish organisations (Christian Aid, Concern Worldwide, Oxfam Ireland, Trócaire, Voice of Irish Concern for the Environment, WIDE Ireland, Banúlacht and Comhlámh) launched a campaign called "Loaded Against the Poor", to highlight how trade policies are unfair to developing countries.
"Developed countries ask developing countries to liberalise their markets, to open their borders, and promise to do the same, but they never do," explained Colm Ó Caoimh, project officer with Comhlámh. "So the producers have to compete with European exports in their own markets, but it is impossible for them to get their goods into our markets, and certainly not at a fair price. It is important to consider that trade is fundamental for the economy, as it gives people access to goods and services and creates new jobs. In developing countries, 42% of national income is gained from trade.
"What we are really concerned about," said Ó Caoimh, "is that the world's global systems are all being geared by one economic philosophy, that is giving the market the power to decide everything. That is creating disadvantages for people in developing countries. That system is presided over by the WTO."
The WTO is the body that oversees international trade rules. It comprises 142 member countries, supposedly equal, but as poor countries cannot afford to send negotiators to the around 3,000 meetings per year at the WTO HQ in Geneva, they consistently lose out. Japan has 25 negotiators at the WTO, Bangladesh has just one, and 29 of the poorest countries have none.
At the meeting in Qatar, Colm Ó Caoimh and Maura Leen (Trócaire) attended as observers attached to the Dublin government delegation. O'Caoimh explained before his journey to Qatar that the policies to be approved want to force the developing countries to open up more their markets. "Developing countries are better than us at producing agricultural products, but by opening up the market we mean that we want them to allow our banks to go in there, our insurance companies, our airlines, our mining companies, forestry companies but we do not allow their agricultural products to get into our countries. We continue subsidies that stop their agricultural products getting in here. If we want a balance, we have to give, as well as receive." Trade barriers in the North cost developing countries $700 billion a year according to the UN - 14 times what they receive in aid every year - while subsidies for agriculture in OECD countries amount to $300 billion per year, more than the annual income of all sub-Saharan African countries.
Developing countries depend on Western economies as they need aid and they are chained by debt and those things are being used to force them to agree to further opening up. There is tremendous pressure on developing countries to accept rules made to favour the interests of the richest countries.
Every two years, the World Trade Organisation (WTO) holds a high-level ministerial meeting. From 9 to 13 November, world trade ministers gathered in Qatar, on the Persian Gulf for the first WTO meeting since the events of Seattle, when anti-globalisation protesters (comprising environmentalists, trade unionists and many others) made their voices heard.
WTO rules promote private ownership of plants' genetic material, including food crops on which millions depend, and medicines. Early this year, drug companies took legal action against the Government of South Africa and Brazil, saying their efforts to produce cheap medicines for people with HIV/AIDS were against WTO rules. These cases were dropped under pressure from the public in many countries - rich and poor.
Ministers in Doha approved a text relating to the WTO's intellectual property rights accord, known as TRIPS, stating that TRIPS "can and should be interpreted and implemented in a manner supportive of WTO members' rights to protect public health and in particular to ensure access to medicines for all".
Senior US trade officials said that "great progress" had been made on the health issue, and the success demonstrated to developing countries that the WTO was "part of the solution, not part of the problem". But they also argued the text was a political statement that did not have legal force.
Oxfam's Ian Bray told the BBC that the Doha deal was better than anyone could have hoped for a year ago.
However, Oxfam expressed disappointment no agreement has been reached on the issue of compulsory licensing in third countries. This allows countries with no drugs industry to arrange cheap production abroad.
But the pharmaceutical industry expressed concern that the "ambiguity" of the deal could make companies reluctant to engage in Aids research.
Loaded Against the Poor
Just before the meeting, the Trade Matters group, formed by six Irish organisations (Christian Aid, Concern Worldwide, Oxfam Ireland, Trócaire, Voice of Irish Concern for the Environment, WIDE Ireland, Banúlacht and Comhlámh) launched a campaign called "Loaded Against the Poor", to highlight how trade policies are unfair to developing countries.
"Developed countries ask developing countries to liberalise their markets, to open their borders, and promise to do the same, but they never do," explained Colm Ó Caoimh, project officer with Comhlámh. "So the producers have to compete with European exports in their own markets, but it is impossible for them to get their goods into our markets, and certainly not at a fair price. It is important to consider that trade is fundamental for the economy, as it gives people access to goods and services and creates new jobs. In developing countries, 42% of national income is gained from trade.
"What we are really concerned about," said Ó Caoimh, "is that the world's global systems are all being geared by one economic philosophy, that is giving the market the power to decide everything. That is creating disadvantages for people in developing countries. That system is presided over by the WTO."
The WTO is the body that oversees international trade rules. It comprises 142 member countries, supposedly equal, but as poor countries cannot afford to send negotiators to the around 3,000 meetings per year at the WTO HQ in Geneva, they consistently lose out. Japan has 25 negotiators at the WTO, Bangladesh has just one, and 29 of the poorest countries have none.
At the meeting in Qatar, Colm Ó Caoimh and Maura Leen (Trócaire) attended as observers attached to the Dublin government delegation. O'Caoimh explained before his journey to Qatar that the policies to be approved want to force the developing countries to open up more their markets. "Developing countries are better than us at producing agricultural products, but by opening up the market we mean that we want them to allow our banks to go in there, our insurance companies, our airlines, our mining companies, forestry companies but we do not allow their agricultural products to get into our countries. We continue subsidies that stop their agricultural products getting in here. If we want a balance, we have to give, as well as receive." Trade barriers in the North cost developing countries $700 billion a year according to the UN - 14 times what they receive in aid every year - while subsidies for agriculture in OECD countries amount to $300 billion per year, more than the annual income of all sub-Saharan African countries.
Developing countries depend on Western economies as they need aid and they are chained by debt and those things are being used to force them to agree to further opening up. There is tremendous pressure on developing countries to accept rules made to favour the interests of the richest countries.